High Plains Gas, Inc. (OTC.BB: HPGS) announced today results from continuing operations for the first quarter of 2012.
Revenue Results:
The Company recognized revenue for the first quarter ended March 31, 2012 of approximately $7.9 million compared to approximately $4.0 million during the corresponding period 2011. Contributing to the substantial increase of quarterly revenue was our energy construction and field maintenance services segment, comprised of Miller Fabrication, LLC and HPG Services which accounted for approximately $6.4 million.
First Quarter 2012 Financial Results:
The Company recorded a net loss applicable to common shareholders for the first quarter 2012 of $5,880,359 compared to loss of $6,978,623 in the corresponding 2011 period.
Contributing significantly to the net losses incurred in first quarter were losses recorded in connection with the more noteworthy "non-cash" and some "nonrecurring" items were:
"Non Cash"
- $950,224 - depletion, depreciation, and amortization
- $187,273 - accretion of asset retirement obligation discount
- $73,807 - amortization of bond commitment and finance fees
"Non Cash/Nonrecurring"
- $1,351,624 - stock and warrant based compensation
- $1,080,000 - loss on debt conversion related party
- $487,787 - loss on impairment of oil and gas prospect
- $393,000 - stock issued for services and commitment fees
- $172,118 - loss on debt conversion
Brandon Hargett, CEO of High Plains Gas, mentioned, "We are pleased with the results of our first quarter revenue numbers in spite of the disappointing natural gas pricing prevalent throughout the industry. We feel very fortunate that our energy construction, repair and field maintenance services division continues to demonstrate sustained growth, now realizing over 80% of the Company's revenue during the first quarter. Unaudited expected revenue from our subsidiary Miller Fabrication alone is expected to be over $7 million in the second quarter of 2012 with anticipated revenue margins of approximately 15% as we begin to realize revenue that has accrued over the past three months from some of the larger projects that we have secured.
"We continue to be optimistic about the future of High Plains Gas. We have been faced with many challenges at High Plains Gas – and management is committed to our mission of making the company profitable by third quarter 2012. To realize this accomplishment, we must persist in strengthening our balance sheet by continuing to reduce current and long-term debt, aggressively reduce costs associated with overhead and operations, continue to add sophistication and talent throughout the organization, and maintain our current growth in revenues. These basic principles are all points that we have executed over the past eight months and our commitment to shareholders is that we will continue to do so in a more urgent pace through sheer determination coupled with integrity."
High Plains Gas Inc. is a provider of goods and services to regional end markets serving the energy industry. We provide construction and field maintenance services primarily to the energy and energy related industries mainly located in Wyoming and North Dakota through our subsidiaries Miller Fabrication LLC, and HPG Services. We produce natural gas from the Powder River Basin located in Northeast Wyoming through our subsidiary High Plains Gas, LLC. For additional information on High Plains Gas, please visit the Company's website at www.highplainsgas.com/.
Safe Harbor
Statements made about our future expectations are forward-looking statements and subject to risks and uncertainties as described in our most recent filings made with the US Securities and Exchange Commission, and are subject to change at any time. Our actual results could differ materially from these forward-looking statements. We undertake no obligation to update publicly any forward-looking statement.
Contacts:
High Plains Gas, Inc.
Brandon Hargett, 307-686-5030
ir@highplainsgas.com
